Survey of the Best CD Rates for November 26, 2011

This holiday week was a quiet one for CD rate changes. On my short list of top CD rates, there were only a few rate cuts. As usual, Ally Bank cut its CD rates. Its 11-month No-Penalty CD yield fell from 0.99% to 0.93%, and Ally's 5-year CD yield fell from 1.88% to 1.84%.

There remains a few more days to take advantage of Velocity Credit Union's three CD specials. Velocity's 1.51% APY 2-year CD, 2.12% APY 3-year CD and 2.83% APY 5-year CD remain the best deals for nationally available CDs. There's an online application, but you have to be careful to ensure you get the promo rates and not the standard rates. I have more details in my latest Velocity CD review. Velocity is a credit union that makes it easy for anyone to join via an association membership. It's one of many credit unions on my new list of credit unions open to all.

If you prefer a bank over a credit union, you will likely have to settle for much lower rates especially for long-term CDs. The best nationally available 5-year CD rate at a bank continues to be at US Bank with a 2.25% APY. This is US Bank's special CD, and the term is just under 5 years (59 months). As you can see in the list below, you can get a much higher rate at both Velocity Credit Union and Melrose Credit Union. Another downside with US Bank is that it's on my list of inflation dangerous banks since its disclosure gives the bank the right to refuse an early withdrawal. On top of that, it has a harsh early withdrawal penalty (see my US Bank CD review).

Local CD Deals

The two best CD deals continue to be in Southeast Texas where two credit unions offer top CD rates. Gulf Coast Credit Union is offering a 3.05% APY 3-year CD and NavyArmy Federal Credit Union is offering a 3.00% APY 30-month CD.

I only have two other CDs in my list of local CD deals with yields of 3.00% or higher. For both cases, the terms are much longer. One is a 5-year CD with a 3.03% APY at El Paso Employees FCU, and the other is a 10-year CD with a 3.00% APY at San Antonio Credit Union (SACU).

Based on the names of some of these credit unions, you might think their memberships are restricted to certain groups. However, all but SACU are open to anyone who lives, works, worships or attends school in parts of the metro areas where these credit unions are located. They're still local deals, but they're more open than you might have expected.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest EWP, it's still a good deal when closed early even with the recent rate cuts.

Since Velocity's early withdrawal penalty is only 6 months of interest, this makes Velocity's 5-year special CD a very good deal for short terms. Ally Bank's 1.84% 5-year CD is still the best deal for 6 and 12 months. However, Velocity's 2.83% APY 5-year CD becomes a better deal when it's closed after 12 months.

As we learned last month, there is some risk that the bank or credit union may increase the early withdrawal penalty on existing CDs (see my post on a credit union that was allowed to raise the EWP on existing CDs).

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. The Friday blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The Friday blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of November 26, 2011

Under 1-Year CD Rates

• Ally Bank - 1.22% (1.84% 5-year CD closed after 6 months, see review & risks)
• Digital Credit Union - 1.20% ($25K min w/relationship) 0.95% (no relationship) 6-month add-on CD
• Atlantic Coast Bank - 1.00% 7-month internet CD
• Ally Bank - 0.93% 11-month No-Penalty CD
• OneWest Bank - 0.85% 6-month CD

• Noteworthy Local Deals

• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Chasewood Bank - 1.16% 6-month CD (Houston)
• First Choice Bank - 1.05% ($50K) 1.00% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• Industrial Credit Union - 1.00% 6-month CD (Boston metro area)
• Community Bank of Tri-County - 1.00% 4-month CD (Southern Maryland)

1-Year CD Rates

• Ally Bank - 1.53% (1.84% 5-year CD closed after 1 year, see review & risks)
• Velocity Credit Union - 1.41% (2.83% 5-year CD closed after 1 year, see review)
• Digital Credit Union - 1.36% ($25K min w/relationship) 1.11% (no relationship) 1-year add-on CD
• CIT Bank - 1.15% ($25K min) add-on & bump-up 1-year CD
• Melrose Credit Union - 1.15% 1-year CD
• Doral Bank Direct - 1.15% 1-year CD

• Noteworthy Local Deals

• NavyArmy Federal Credit Union - 1.60% ($100K) 1.50% ($1K) 12-month CD (Corpus Christi, TX metro)
• Credit Union of Atlanta - 1.53% 12-month CD (parts of Atlanta, Georgia)
• University of Iowa Community Credit Union - 1.50% ($250K) 1.40% ($100K) 1.30% ($1K) 13-month CD (several parts of Iowa)
• El Paso Employees Federal Credit Union - 1.46% 1-year CD (El Paso, TX)
• General Electric Credit Union - 1.42% ($100K) 1-year CD (Cincinnati OH metro)
• Alma Bank - 1.35% 12-month Liquid CD (New York City)
• Harris County Credit Union - 1.31% ($95K) 1-year CD (Houston)
• Chasewood Bank - 1.26% 1-year CD (Houston)
• Alaska USA Federal Credit Union - 1.25% ($100K) 1.15% ($10K) 1-year CD (San Bernardino County, CA; parts of WA & AK)
• First Choice Bank - 1.15% ($50K) 1.10% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Velocity Credit Union - 1.88% (2.83% 5-year CD closed after 18 months, see review)
• Digital Credit Union - 1.73% (2.61% 5-year CD closed after 18 months, see risks)
• Ally Bank - 1.63% (1.84% 5-year CD closed after 18 months, see review & risks)
• Alliant Credit Union - 1.35% ($25K min) 18-month CD
• Franklin Synergy Bank - 1.24% 18-month CD (requires chk or savings)
• Incredible Bank - 1.20% 19-month CD

• Noteworthy Local Deals

• Alaska USA Federal Credit Union - 1.60% ($100K) 1.40% ($10K) 18-month CD (San Bernardino County, CA; parts of WA & AK)
• Veridian Credit Union - 1.50% ($100K) 1.30% ($1K) 15-month CD (several parts of Iowa)
• Department of Commerce FCU - 1.45% 18-month CD (Washington DC)
• Focus Bank - 1.31% 19-month CD (online application for MO, AR, KY, TN & parts of IL)
• First Choice Bank - 1.30% ($50K) 1.25% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)
• HAPO Community Credit Union - 1.25% 18-month CD (WA State)

2-Year CD Rates

• Velocity Credit Union - 2.12% (2.83% 5-year CD closed after 2 years, see review)
• Digital Credit Union - 1.95% (2.61% 5-year CD closed after 2 years, see risks)
• Ally Bank - 1.69% (1.84% 5-year CD closed after 2 years, see review & risks)
• Velocity Credit Union - 1.51% 2-year CD promo (see review)
• Alliant Credit Union - 1.50% ($25K min) 2-year CD
• CIT Bank - 1.32% ($100K) 1.30% ($1K) 2-year CD

• Noteworthy Local Deals

• NavyArmy Federal Credit Union - 2.00% ($100K) 1.85% ($1K) 2-year CD (Corpus Christi, TX metro)
• Veridian Credit Union - 1.90% ($100K) 1.70% ($1K) 25-month CD (several parts of Iowa)
• HEW Federal Credit Union - 1.75% 2-year CD (Washington DC metro)
• Alaska USA Federal Credit Union - 1.75% ($100K) 1.55% ($10K) 2-year CD (San Bernardino County, CA; parts of WA & AK)
• Harris County Credit Union - 1.71% ($95K) 1.41% ($2.5K) 2-year CD (Houston)
• Department of Commerce FCU - 1.65% 2-year CD (Washington DC)
• mBank - 1.60% 2-year CD (parts of Michigan)
• Wings Financial Credit Union - 1.51% 2-year CD (Seattle & Minneapolis Metro areas)
• Chasewood Bank - 1.51% 2-year CD (Houston)
• LOMTO Federal Credit Union - 1.50% 2-year CD (parts of New York City)

3-Year CD Rates

• Velocity Credit Union - 2.35% (2.83% 5-year CD closed after 3 years, see review)
• Digital Credit Union - 2.17% (2.61% 5-year CD closed after 3 years, see risks)
• Velocity Credit Union - 2.12% 3-year CD promo (see review)
• Melrose Credit Union - 1.91% 3-year CD
• Ally Bank - 1.74% (1.84% 5-year CD closed after 3 years, see review & risks)
• Alliant Credit Union - 1.70% ($25K min) 3-year CD
• Doral Bank Direct - 1.65% 3-year CD
• CIT Bank - 1.56% ($100K) 1.54% ($1K) 3-year CD

• Noteworthy Local Deals

• Gulf Coast Credit Union - 3.05% 3-year CD (Corpus Christi, TX metro)
• NavyArmy Federal Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 37-month CD (several parts of Iowa)
• El Paso Employees Federal Credit Union - 2.32% 3-year CD (El Paso, TX)
• Credit Union of Atlanta - 2.28% 3-year CD (parts of Atlanta, Georgia)
• Alaska USA Federal Credit Union - 2.10% ($100K) 2.00% ($10K) 3-year CD (San Bernardino County, CA; parts of WA & AK)
• Tandem Federal Credit Union - 2.00% 3-year CD (parts of Detroit metro)
• SPCO Credit Union - 1.97% ($50K) 1.76% ($1K) 3-year CD (Houston, TX)
• Wings Financial Credit Union - 1.96% 3-year CD (Seattle & Minneapolis Metro areas)
• LOMTO Federal Credit Union - 1.85% 3-year CD (parts of New York City)
• HAPO Community Credit Union - 1.80% 3-year CD (WA State)
• Community Bank of Tri-County - 1.80% bump-up 30-month CD (Southern Maryland)
• EBSB Direct - 1.80% 3-year internet CD (New England & New York State)
• mBank - 1.75% 3-year CD (parts of Michigan)
• Security Service Federal Credit Union - 1.75% ($100K) 1.60% ($500) 3-year CD (parts of Texas, lower rates in CO)
• City of Boston Credit Union - 1.75% ($50K) 1.65% ($500) 3-year CD (Boston metro)
• Broward Bank of Commerce - 1.61% 3-year CD (South Florida)
• First Choice Bank - 1.60% ($50K) 1.55% ($2.5K) 3-year CD (Los Angeles & Orange County, CA)

4-Year CD Rates

• Velocity Credit Union - 2.47% (2.83% 5-year CD closed after 4 years, see review)
• Digital Credit Union - 2.36% ($25K min w/relationship) 2.11% (no relationship) 4-year CD
• Digital Credit Union - 2.28% (2.61% 5-year CD closed after 4 years, see risks)
• Melrose Credit Union - 2.17% 4-year CD
• airbanking (MainStreet) - 2.00% 4-year CD

• Noteworthy Local Deals

• Credit Union of Atlanta - 2.52% 4-year CD (parts of Atlanta, Georgia)
• Institution for Savings - 2.50% 4-year CD (one-branch special in northeast MA)
• Department of Commerce FCU - 2.50% 4-year CD (Washington DC)
• University of Iowa Community Credit Union - 2.50% ($250K) 2.40% ($100K) 2.30% ($1K) 49-month CD (several parts of Iowa)
• El Paso Employees Federal Credit Union - 2.42% 4-year CD (El Paso, TX)
• Liberty Savings Federal Credit Union - 2.40% 4-year CD (Northern NJ)
• SPCO Credit Union - 2.32% ($50K) 2.02% ($1K) 4-year CD (Houston, TX)
• Alaska USA Federal Credit Union - 2.30% ($100K) 2.20% ($10K) 4-year CD (San Bernardino County, CA; parts of WA & AK)
• Eagle One Credit Union - 2.27% 4-year CD (Philadelphia)
• mBank - 2.25% 4-year CD (parts of Michigan)
• LOMTO Federal Credit Union - 2.15% 4-year CD (parts of New York City)
• HAPO Community Credit Union - 2.15% 4-year CD (WA State)
• Wings Financial Credit Union - 2.12% 4-year CD (Seattle & Minneapolis Metro areas)
• Peoples Alliance Credit Union - 2.00% 4-year CD (South Florida)

5-Year CD Rates

• Digital Credit Union - 2.86% ($25K min w/relationship) 2.61% (no relationship) 5-year CD
• Velocity Credit Union - 2.83% 5-year CD promo (see review)
• Melrose Credit Union - 2.68% 5-year CD
• US Bank - 2.25% 59-month CD
• airbanking (MainStreet) - 2.15% 5-year CD

• Noteworthy Local Deals

• El Paso Employees Federal Credit Union - 3.03% 5-year CD (El Paso, TX)
• Department of Commerce FCU - 2.80% 5-year CD (Washington DC)
• Liberty Savings Federal Credit Union - 2.80% 5-year CD (Northern NJ)
• Eagle One Credit Union - 2.79% 5-year CD (Philadelphia)
• SPCO Credit Union - 2.77% ($50K) 2.48% ($1K) 5-year CD (Houston, TX)
• Alaska USA Federal Credit Union - 2.75% ($100K) 2.65% ($10K) 5-year CD (San Bernardino County, CA; parts of WA & AK)
• General Electric Credit Union - 2.64% 5-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 2.55% 5-year CD (parts of New York City)
• First General Credit Union - 2.50% 5-year CD (Grand Rapids, MI metro)
• Security Service Federal Credit Union - 2.45% ($100K) 2.30% ($500) 5-year CD (parts of Texas, lower rates in CO)
• Pasadena Service Credit Union - 2.45% 5-year IRA CD (Southern California)
• Randolph-Brooks Federal Credit Union - 2.43% ($75K) 2.38% ($20K) 5-year CD (San Antonio & Austin, TX)
• Wings Financial Credit Union - 2.42% 5-year CD (Seattle & Minneapolis Metro areas)
• Peoples Alliance Credit Union - 2.24% 5-year CD (South Florida)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.80% ($20K) 7-year CD (membership restrictions)
• Apple Federal Credit Union - 2.80% 10-year CD
• Pentagon Federal Credit Union - 2.75% 7-year CD
• Discover Bank - 2.50% 10-year CD (2.55% AAA members)

• Noteworthy Local Deals

• SACU - 3.00% ($90K) 2.95% ($10K) 10-year (San Antonio, TX)
• Security Service Federal Credit Union - 2.90% ($100K) 2.75% ($500) 7-year CD (parts of Texas, lower rates in CO)
• Randolph-Brooks Federal Credit Union - 2.89% ($75K) 2.84% ($20K) 7-year CD (San Antonio & Austin, TX)
• Liberty Savings Federal Credit Union - 2.85% 6-year CD (Northern NJ)
• Department of Commerce FCU - 2.80% 7-year CD (Washington DC)
• SACU - 2.60% ($100K) 2.55% ($10K) 7-year (San Antonio, TX)
• Randolph-Brooks Federal Credit Union - 2.58% ($75K) 2.53% ($20K) 6-year CD (San Antonio & Austin, TX)
• Teachers Credit Union - 2.50% 71-month CD (parts of Indiana)
• Malvern Federal Savings Bank - 2.25% 7-year (East Pennsylvania)
• Third Federal - 2.05% 6-year CD (in SE & SW Florida, Ohio)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.